18 July 2012

FRC: Report on Independent Oversight of Regulation of the Audit, Accountancy and Actuarial Professions

The Report comments on the Board’s statutory and non-statutory independent oversight of the regulation of auditors, accountants and actuaries by their respective professional bodies, on its responsibilities for regulation internationally and as the Independent Supervisor of Auditors General. On the regulation of auditors and accountants, the Report comments that much regulatory practice is of a high standard, but draws attention to specific areas to which some bodies need to pay particular attention. On the regulation of actuaries, the FRC has encouraged the Institute and Faculty of Actuaries to consider the public interest outcomes it is seeking to achieve in regulating its members, and the quality of the regulatory processes for doing so. The Report notes the publication by the Institute and Faculty of Actuaries of a new regulatory strategy, and updated guidance on whistle blowing and handling conflicts of interest.
 
POB Chair, John Kellas, said:

“In recent years, we have reviewed and made recommendations to the recognised professional accountancy bodies on all significant aspects of their regulation of statutory auditors. This active programme of oversight has helped to maintain and improve the sharpness of the regulatory processes, and has led to many specific improvements in the bodies’ systems and practices of audit regulation.

We do not think that the current proposals from the European Commission, which would require most day-to-day regulation of auditors to be carried out independently of the professional accountancy bodies, are necessary, well thought out, or would serve the public interest. The current arrangements in the UK allow the FRC to focus on matters of major public interest, while leaving the regulation of other matters to the professional bodies.”

Press release

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